This Government Undertaking Gives 8.51% Interest On Fixed Deposits

The Tamil Nadu state-owned Tamil Nadu Transport Development Finance Corporation is offering very good interest rates to senior citizens and regular depositors.

Senior citizens deposits from Tamil Nadu Transport Development Finance Corporation

For senior citizens the interest rate goes as high as 8.51%, if the investor is taking a yearly interest payment and places the deposit for a period of 5-years. On the other hand, if the depositor places the deposit for a period of 36-months the interest rate paid is 8.24%. There are various other options including quarterly and monthly payouts where the interest rate paid is slightly lower. For example, under the monthly payout for a period of 60-months the amount of interest paid is 8.24%. Similarly, for senior citizens there is also the cumulative scheme where a 60-month deposit fetches an interest rate of 8.25%.

Non senior citizens from Tamil Nadu Transport Development Finance Corporation

The deposit rates are also attractive for those investors who are non senior citizens. In fact, the interest rates offered are as much as 8.24% for regular depositors who place the deposit for 60-months with an annual payout. There is also the money multiplier scheme more popularly known as the cumulative deposits, where the maximum interest that is payable is 8%, which is again very good. We suggest that investors look to the cumulative deposits as the compounding would help, unless they are in dire need of regular income.

Our take on the deposits of Tamil Nadu Transport Development Finance Corporation

We believe there is a good amount of safety, given that the company is a Tamil Nadu government owned enterprise. The interest rates are probably the best when compared to other government entities, including government owned banks. We believe that investors should lock money in the 4 and 5 year deposits as these can be rather good. Also, look for the cumulative option as the law of compounding would apply. As mentioned the interest rates on all of the tenures are attractive and better than peers.